Wolters Kluwer Regulatory Consultant and Manager for Training & Business Servicing Processing Operations Shanon Conroy looks at how to prepare for the new HMDA rule in her article, “Revamped HMDA Report: Know Before You Submit,” available now on Banking Exchange.

Here’s an excerpt to get you started.

Remember your first time trying to ride a bike? The thought of taking flight without Mom or Dad’s help was terrifying. But with some encouragement and guidance going through the basic steps, before you knew it, you were off on your own.

When it comes to data collection and reporting, we all know the basics. Institutions subject to the Home Mortgage Disclosure Act (HMDA) and Community Reinvestment Act (CRA) are required to collect, record, report, and disclose information about their mortgage and small business lending activity. Every year on March 1, institutions must submit their lending data from the previous year to the federal government. This data is then aggregated by the government and used for many purposes: in CRA exams, by institutions to analyze lending patterns of competitors, by community groups, and for fair-lending purposes.

The new HMDA rule dramatically changes data collection in just about every way: institutions and transactions covered; required data points; collection and reporting of applicant information such as gender, race, and ethnicity; and the processes for reporting and disclosing the data. While most of these data changes apply on or after Jan. 1, 2018, some changes such as institutional coverage and submission/reporting requirements, apply to 2017 data.

Read the full-article on the Banking Exchange website.